Justin Sun’s Dynamic Moves Align With MakerDAO’s Transformative Phase

August 10, 2023 - Around 2 mins mins to read

Key Points:

Tron’s Justin Sun mints 58 million DAI from stETH while transferring MKR tokens to Binance.
MakerDAO undergoes an “Endgame” overhaul, splits into self-governing units, and offers higher DAI deposit returns.
DAI holders get an 8% yield via Maker’s DSR contracts; Maker Protocol backs DAI with collateralized crypto deposits.

Tron network founder and crypto investor Justin Sun has once again made significant moves in the crypto space. Sun recently mortgaged 67,000 stETH (staked Ethereum) to mint an impressive 58 million DAI, which he promptly deposited into MakerDAO.

Justin Sun's Dynamic Moves Align With MakerDAO's Transformative Phase

This follows his earlier actions, where he transferred $4.3 million worth of MKR tokens to CEX Binance. This move sparked speculation about a potential token release, coinciding with the ongoing controversial restructuring of the DeFi MakerDAO protocol.

MKR holds the reins as the governance token for MakerDAO, a major player in the decentralized finance (DeFi) arena and the issuer of the widely-used $4.7 billion DAI stablecoin.

Sun’s maneuvering coincides with MakerDAO’s implementation of a comprehensive governance overhaul, aptly named the “Endgame.”

Spearheaded by the protocol’s founder, Rune Christensen, this ambitious restructuring involves fragmenting the decentralized autonomous organization (DAO) into smaller, self-governing entities backed by tangible real-world assets.

In response to this evolution, the MakerDAO community has approved and initiated a temporary increase in the annual returns for depositing DAI into the protocol. Consequently, stakeholders in this decentralized stablecoin can now enjoy an impressive 8% yield on their holdings.

It’s important to note that the DSR (Dai Savings Rate) earnings are enabled through the Spark Protocol, though this avenue remains inaccessible to non-U.S. users and VPN-linked addresses.

The DSR contracts of Maker facilitate the accrual of earnings from the protocol’s revenue, giving DAI holders a chance to capitalize on their holdings.

The community is the governing body behind the Maker Protocol, which generates the dollar-pegged DAI by utilizing over-collateralized deposits of various other cryptocurrencies, including Ethereum and Uniswap’s UNI token.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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